Determinants of crop productivity in Nigeria in the era of agribusiness

Annotation: Agriculture is the most significant sector of the Nigeria economy. The sector serves as the major employer of labour, source of income for smallholder farmers, non-oil foreign exchange earner, and food security. Therefore, the integration of agriculture with other sectors of the economy in the country in the present era of agribusiness is necessary. This contribution assesses some determinants of crop production in Nigeria, using OLS regression and Granger causality approaches. The OLS suggest that fertilizer consumption, cultivated land, loans and producer price index have a relationship with crop productivity in Nigeria. In the same fashion, the estimated results from the Granger causality/Block exogeneity Wald test based on a Vector Autoregressive (VAR) model provides a bidirectional relationship running from fertilizer consumption to crop production. A unidirectional causality is confirmed between cultivated land and crop productivity in Nigeria. The results also signify a unidirectional causality between the farm gate price and agricultural fertilizer applications. The Nigerian government should create an enabling environment and provide or guaranteeing affordable loans to producers, continue to subsidize fertilizer and ensure that it is distributed to farmers at the right time. Farm expansion should be encouraged for full utilization of the abundant agricultural area for maximum and sustainable production, food security and market in the present era of agribusiness.